The Company is pleased to make following disclosure to the Muscat Securities market:
In terms of the Power Purchase Agreement (PPA) entered into by the then Ministry of Electricity and Water and the Company on 27th June 1994, the Company constructed the Interconnection and transmission Facilities (ITF) under build, own and transfer (BOT) basis. The transfer of the assets was stipulated to be effective on completion of 20 years concession period ending 14th September 2016.
As per the PPA, the assets were to be fully depreciated and transferred to the Government against a nominal compensation of Rial Omani 1.
As anticipated in the Company’s annual report for the year ending 31 December 2015, the Company is pleased to announce that the Company has successfully achieved the transfer of the ITF pursuant to the signing of a ITF transfer agreement with Oman Electricity Transmission Company SAOC (OETC), Mazoon Electricity Company SAOC (MEC) and Oman Power and Water Procurement Company SAOC (OPWP) collectively. The ITF transfer agreement was signed on 1st December 2016.
Both phases of the Manah Power Plant, as per PPA, will be handed over to the Government in the year 2020.